Buying Energy Efficient Products: Policy Requirements, Purchasing Tools, and Agency Experiences Christopher Payne Lawrence Berkeley National Laboratory

Procurement Policies: Energy-Efficient Products Energy Independence and Security Act of 2007 Energy Policy Act of 2005 Executive Order Federal Acquisition Regulations Part 23 & 52 Agency Procurement Directives

Federal Sector Statistics Consumption: –Annual energy consumption ~400 trillion BTUs –Annual energy cost ~$5.6 billion Annual Purchase of Products: –~$4 billion Savings Potential Through Purchasing: –Annual energy savings ~15 trillion BTUs –Annual energy cost savings ~$210 million

Energy Policy Act of 2005: Section 104 Procurement: –Agencies shall buy only ENERGY STAR ® -qualified or FEMP- designated products Procurement Planning –Agencies shall incorporate ENERGY STAR ® and FEMP performance criteria into: Guide and product specifications Construction, renovation, and services contracts Evaluation of competitive offers

Energy Policy Act of 2005: Section 104 (cont.) Listing of Energy Efficient Products in Federal Catalogs –GSA and DLA shall: Supply only ENERGY STAR-qualified and FEMP-designated products Clearly identify and prominently display ENERGY STAR and FEMP- designated products Exceptions: –Where agency head documents in writing that: Product is not life-cycle cost-effective No energy-efficient product meeting function requirements is “reasonably available” Product/system is for combat or related missions

Energy Independence & Security Act of 2007: Section 524 …if an agency purchases an eligible product, the agency shall purchase– (A) an eligible product that uses not more than 1 watt in the standby power consuming mode of the eligible product; or (B) if an eligible product described in subparagraph (A) is not available, the eligible product with the lowest available standby power wattage in the standby power consuming mode of the eligible product.

Energy Independence & Security Act of 2007: Section 525 (B) CATALOGUE LISTING DEADLINE. –Not later than 9 months after the date of enactment of this Act, the General Services Administration and the Defense Logistics Agency shall ensure that the requirement established by the amendment made by subsection (a)(2)(A) has been fully complied with.

Executive Order Section 2. Goals for Agencies. In implementing the policy set forth in section 1 of this order, the head of each agency shall: … (d) require in agency acquisition of goods and services (I) use of sustainable environmental practices, including acquisition of biobased, environmentally preferable, energy-efficient, water-efficient, and recycled-content products….

Federal Acquisition Regulations Part Energy-efficient products. (a) If life-cycle cost-effective and available (1) When acquiring energy-using products (i) Agencies shall purchase ENERGY STAR or other energy-efficient items listed on the Department of Energy’s Federal Energy Management Program (FEMP) Product Energy Efficiency Recommendations product list….

Federal Acquisition Regulations Part 52 (b) The Contractor shall ensure that energy-consuming products are energy efficient products (i.e., ENERGY STAR ® products or FEMP-designated products) at the time of contract award, for products that are: 1.Delivered; 2.Acquired by the Contractor for use in performing services at a Federally-controlled facility; 3.Furnished by the Contractor for use by the Government; or 4.Specified in the design of a building or work, or incorporated during its construction, renovation, or maintenance. (c) The requirements of paragraph (b) apply to the Contractor (including any subcontractor) unless: 1.The energy-consuming product is not listed in the ENERGY STAR ® Program or FEMP; or 2.Otherwise approved in writing by the Contracting Officer.

Current Product Types 65 product types in the following categories: –Lighting –Commercial & Industrial Equipment –Food Service Equipment –Office Equipment –Home Electronics –Appliances –Residential Equipment –Construction & Plumbing Products

Guiding Principles for Selecting Eligible Products Analyze the market for energy-consuming products: –Prevalence in market –Significance of energy consumption –Variation in energy consumption among like products Identify top 25% of energy performance in product category: –Performance maintained or enhanced –Efficiency achievable without proprietary technology Verify cost-effectiveness and market availability –Multiple manufacturers –Feasible product differentiation and testing

ENERGY STAR Government-backed symbol for energy efficiency Available from both federal supply and commercial sources Label on product, packaging, or owner’s manual Product lists at:

FEMP Purchasing Specifications

Tools Available Performance requirements Model contract language Energy cost calculators Additional information

Model Procurement Language Both ENERGY STAR and FEMP Work document format Cut and paste into contracts and solicitations Download from Web sites

Model Procurement Language - ENERGY STAR ® Sample Scanners The Vendor Must: Provide scanners that earn the ENERGY STAR and meet the ENERGY STAR specifications for energy efficiency as outlined below. The vendor is encouraged to visit for complete product specifications and an updated list of qualifying products.

ENERGY STAR & FEMP Activities Listening to federal buyers to provide relevant information and assistance Working with GSA and DLA to improve identification of products in federal supply systems Issuing guidance on agency requirements under EPAct ‘05 Sec. 104, EISA ‘07 Sec. 524, and EO Maintaining current performance specifications Identifying new efficiency opportunities

Web Sites ENERGY STAR Program 888-STAR-YES ( ) Federal Energy Management Program

Conclusion By using money already being spent, we can: –Meet federal purchasing requirements –Assist in meeting federal energy reduction goals –Reduce operating cost –Prevent pollution –Encourage the production of efficient products